For Immediate Release
Digital Domain Media Receives Additional $11 Million in Economic Incentives
Brings Total of Government and Partner Funding to
More than $185 Million
PORT ST. LUCIE, Fla., December 29, 2011 - Digital Domain Media Group, Inc. (NYSE: DDMG), a leading digital production company focused on visual effects, original content animation and major studio co-productions, today announced that it has been approved for an additional $11 million of transferable tax credits by the Florida Department of Economic Opportunity. Such tax credits can either be applied in the award amount to directly reduce the recipient's Florida state tax liability, or they can be sold for cash to other Florida state corporate taxpayers. The awarded amounts are designed by the Florida legislature to reduce the company's direct costs of Florida-based visual effects productions and animation feature film projects by amounts equal to between 20 percent and 30 percent. The recent award is in addition to prior awards of $8.9 million that will be used primarily to offset the cost of the company's first animated feature film to be produced in Florida, The Legend of Tembo.
Including the recent transferable tax credits, Digital Domain Media Group is the beneficiary of approximately $135.1 million of cumulative and continuing incentives provided by the State of Florida and the Florida cities of Port Saint Lucie and West Pam Beach. These incentives provide meaningful benefit directly to the company's newest business initiatives:
· Tradition Studios, a family-focused, original content feature animation film studio in Port Saint Lucie, Florida
· Digital Domain Institute, a groundbreaking collaboration with The Florida State University's College of Motion Picture Arts that provides students with a dual-enrollment opportunity to earn a bachelor of fine arts (BFA) degree from FSU, along with professional certification in animation and visual effects from DDI.
"This recent award brings the total funding that we have received from our government partners to approximately $135.1 million in support of our business expansion," said John Textor, CEO of Digital Domain Media Group. "As we deliver on the job creation promises we have made to the communities that support our growth, we benefit from a unique business model that utilizes these grants and economic incentives to greatly minimize the financial risk of such growth."
Including an estimated $50 million facility contribution from the company's recently announced China joint venture partner, Digital Domain Media Group has received approximately $185.1 million from government entities and partners, as follows:
|State of Florida|
|Tax rebates - resalable||$19.9|
|City of Port St. Lucie, Florida|
|Land (appraised value)||$10.5|
|Low-interest building and equipment|
|City of West Palm Beach, Florida|
|Land (appraised value)||$9.8|
|Beijing Galloping Horse Film Co.||$50.0|
About Digital Domain Media Group
Digital Domain Media Group is an award-winning digital production company. Since its inception in 1993, it has been a leading provider of computer-generated ("CG") animation and digital visual effects ("VFX") for major motion picture studios and advertisers. The company, its work and its employees have been recognized with numerous entertainment industry awards and nominations, including seven awards issued by the Academy of Motion Picture Arts and Sciences - three Academy Awards® for Best Visual Effects and four awards for Scientific and Technical Achievement. Our filmography of over 80 major motion pictures includes Thor, TRON: Legacy, the Transformers trilogy, The Curious Case of Benjamin Button, Apollo 13 and Titanic. The company's digital production capabilities include the creation of CG animated content, performance capture, the conversion of two-dimensional ("2D") imagery into three- dimensional ("3D") imagery and CG visual effects such as fluid simulation, terrain generation and photorealistic animation.
Safe Harbor Statement
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include comments about the Company's plans, prospects, strategies and future performance. They are made on the basis of our management's current expectations and beliefs, as well as a number of assumptions regarding future events and business performance as of the time the statements are made. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control. These could cause actual results to differ materially from the results expressed or implied in the forward-looking statements.
Such differences may result from actions taken by the Company, as well as from developments beyond the Company's control, including, but not limited to:
- price volatility of the Company's common stock;
- changes in domestic and global economic conditions, competitive conditions and consumer preferences;
- our dependence on a limited number of large projects each year, and the timing of revenue flows from those projects;
- developments in the status of strategic initiatives taken by the Company;
- audience acceptance of feature films we may co-produce; and
- rapid technological developments, including new forms of entertainment.
Further information on these and other factors and risks that could affect our business is included in filings we make with the Securities and Exchange Commission from time to time, including under the heading "Risk Factors" in our Registration Statement on Form S-1. These documents are available on the SEC Filings subsection of the Investors section of the Company's website at:
Information on our website is not part of this press release. All information provided in this press release is as of December 29, 2011, and the Company undertakes no obligation to update publicly the information contained in this press release, or any forward-looking statements, to reflect new information, events or circumstances, or to reflect the occurrence of unanticipated events.
Vice President, Investor Relations
Media: Julie Miller
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(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: Digital Domain Media Group Inc. via Thomson Reuters ONE